You Now Need $100,000 Salary to Become Millionaire in 2025

Millionaire Status: Is it Even Possible Anymore in 2025? The answer is yes, though it’s more expensive for single-income households.

Financial Lesson #1: $100k By 40

So, how much do you need to be rich? The true answer? It’s subjective, but if you want to know $100,000 is a good amount to start. I reposted a statement from Josh Rincon that was viewed by nearly 40,000 people.

It stated, “If you don’t have $100k invested by the age of 40, you will probably have to work until you die.” The overall idea is pretty salient. Mr. Rincon is right. Unless you received a sudden windfall like an inheritance, a lottery, or a lawsuit, you are, as the kids say, “cooked.”

Getting to $100k invested can be a game-changer.

Turns out $100k invested in the market at 40 with 25 years to grow with no more investment contributions would be worth $862,308. Factoring in a growth rate of around 9%, the current average of the last 10 years. That’s a gain of $762,308.

Even after tax, that’s a nice $640,000. At 4% annual withdrawal, that’s $25,600 plus $30,000 social security, that’s $55,000 annually to live off.

Not too shabby.

While I’m not emphatically saying this represents an optimal retirement savings amount. It’s better than $0 and even better than the average near retiree with less than $200,000 invested. Don’t believe me, according to CNBC, the median 401(k) balance for those 65 and older is $95,425. It’s also important to note that this message doesn’t apply to those who get super lucky, “I quit my job to start a business and now making $1B in sales,” people. For the average wage earner working a 9-to-5 job, this is a sobering thought.

The lesson is simple: get to $100k invested by 40.

Financial Lesson Number 2: The Long Way

Turns out, becoming a Millionaire in the US is easier than advertised. Considering that America boasts 40% of the world’s millionaires, the degree of social mobility is still alive and well. And surprisingly, you don’t need Crypto, Forex, or NFTs. Pump out enough 9-5 hours with some internal discipline, and your efforts will compound.

14% are your odds of becoming a millionaire in the US, based on data from the Federal Reserve Board’s Survey of Consumer Finances. These odds are further improved by the quality of your choices. From a focus on education, soft skills, and in-demand fields, it’s fairly easy to reach a six-figure income in your lifetime.

Unfortunately, the Get Rich Quick ads on social media tend to distract and/or confuse. Unlike what Grant Cardone professes, you aren’t less than if you don’t make $30,000 per month. I spent the last 15 years helping people, either through resume building, financial literacy tips, articles, or personal 1-on-1s. So much so that I ended up publishing $77,000+ is the Magic Number for Millionaire Millennials (2018).

I realized that most people complicate the math. If we were honest, most people want to spend a million dollars. They aren’t interested in learning how to make a million. However, if you are interested, you have to unlearn and refine what wealth means to you. For some, it’s teaching children. Others would like to build homes and/or furniture. Some want to dance and create art. Many more want to be of service.

Everyone, ultimately, wants more TIME.

Financial literacy concepts were often ⇢ too broad or maybe too complicated.

Start throwing terms like 401k, Dow, Nasdaq, $VOO Invest, compounding interest, dollar-cost-averaging, Individual Retirement Accounts, ROTH, Social Security, etc, you may as well speak Latin.

Instead, keep the information brief as an entry point. For example, why worry about affordable homes when you don’t have a budget, savings, or even decent credit? You need to stop skipping steps. Contrary to popular belief, most Millionaires don’t skip steps. While a few will be the highly skilled or gifted, most will have to apply a more sustainable path to wealth.

This article is all about how.

To prove it, my wife and I have been breaking down our net worth every month. There is no secret shortcut, and you won’t need to buy a book or an expensive course. It’s time to understand the BIG picture and make the financial breakthrough. This is a journey that takes average people to something special.

At least $1 Million Needed For Retirement? How?!

Most people aren’t thinking about Retirement in their 20s or 30s. With so many 65-year-olds retiring with nothing, you can’t afford to ignore this any longer. There is a wave of people who ran out of money and are unretiring to pay the bills.

The lifestyle of the rich and famous has been marketed to youth since the late 1950s. This ramped up to our widespread consumerism and addiction to debt. People are dying financially to live in the moment. Every $500 spent today is worth over $2,600 in retirement. You will wish you had every one of those dollars for future expenses.

To put it more plainly, $5,000 of frivolous spending in 2025 is like throwing away $16,315 of 2065 money (based on 3% inflation rate).

To make matters worse, a one-time investment of $5,000 at a 9% average annualized rate of return is worth $157,047.

Wait, 2065 is a long way away? Well, not exactly.

The average lifespan is up to nearly 80 years old. You are very likely to hit that ripe old age. Doing it broke will only lead to you living in your kids’ basement. Most Americans over 50 are worried that they don’t have enough to retire. Although we can’t plan when we are going to die, we can make a great guess as to how much we will need. We have to think 25 to 40 years into the future.

See the Table Below for how to calculate your automatic millionaire expense needs.

Rough Estimate: 25x Annual Expenses Long-Term Spending Need

Current Lifestyle	Current Annual Expenses	Multiply by 5% Inflation	Retirement Savings Need
Low to Moderate	$45,000	$47,250	$1,181,250
Average Millennial	$60,000	$63,000	$1,575,000
Urban (Metro Areas)	$72,500	$76,125	$1,903,125
Moderate to High	+$110,000	+$115,500	+$2,887,500

So, How Do You Get to Automatic Millions?

First, don’t panic.

Like you, I didn’t start with a million dollars. My mom never made more than $30,000, which put me and my sister squarely in the poverty range.

I lived for the “Free or Reduced Lunch Program” throughout Middle and High School. I completely understand how not having enough dollars doesn’t sit well. And, I know how easy it could be to say it is someone else’s fault.

Unfortunately, saying it’s someone’s fault doesn’t pay the bills. It’s ok to acknowledge where you started, since it’s not necessarily how it will end.

If you are reading this while in a financial bind, just know that one day your day will come. Part of the process is making peace with imperfection in a filtered social media area. The majority of influencers are struggling with high debt and not enough income. Don’t fall victim to comparative economics or the copy-and-paste syndrome.

Trust the path.

So, how do you earn a million dollars in savings? Simple, we work the math backward this time. We have to figure out 1. how much we spend, 2. Determine how much to save/invest, 3. how much we need to make, and that’s it.

1. $100,000 is How Much We Need to make

The average annual expenses for a U.S. household totaled $79,212. Let’s say that’s $80,000, rounded down due to excessively higher-than-average price inflation on all goods.

You need at least that much after taxes. If our effective tax rate is 15% on average, then the starting amount would need to be $94,118 annually. Fact-checkers: $80,000 divided by 85% to give us the Pre-tax amount.

2. Either 25 percent or the minimum Savings/Investing at $36,000 Per Year

Without fail, the wealth-building rules are simple. Save/Invest either 25% of your gross pay or at least $35,000 per year. After that, you can set and forget it. This is easier than you think. This is how the rich got richer and how they hold on to most of their wealth through tax avoidance and wealth maximization strategies.

The execution is simple:

• Max out your 401k, IRA, and HSA.
  • For 2025, the maximum contributions for a 401k, 403b, or 457b is $23,500 per working adult if they are offered at your job.
    • For individuals over the age of 50-59 and 64-over, there is an extra catch-up contribution of +$7,500.
    • For individuals aged 60-63, there is a special catch-up contribution limit that applies, allowing an additional $11,250. 
  • Never miss the matching contribution, and make sure you are allocated based on your risk profile at least.
  • Traditional and/or Roth IRA contribution limits remain at $7,000 for 2025.
    • For anyone over the age of 50, there is a catch-up contribution of +$1,000.
  • For the Health Savings Account contribution limit, you are looking at $4,300 (single) or $8,300 (family coverage) for 2025
    • There’s an extra catch-up of +$1,000

• Total, without you doing the math, is a savings of $34,800 annually. 401k for singles at $23.5k, IRA for singles at $7k, and HSA for singles at $4.3k. Throw an extra $1,200 into your HYSA or an after-tax portfolio to reach the $36,000 goal.

3. The Millionaire Salary You Need to Earn is $107,300 per year

It’s OK, you don’t have to start making this number on day one. I started my career earning $1,000 per month (post-tax). The salary mountain seems the largest at the start.

If your household earns over $100,000 by 25-30, we are in business. If you get married along the way, you can split it with a spouse. Half and Half is fine. $72k and $40k with one watching the kids part-time, that’s fine too. Dual-income households take the cake, and singles pay an extra fee. This isn’t adding any promotions or side hustles, by the way.

Just good old salary, and here’s the math:

Years	Cumulative Contributions	Accumulated Interest Gained at Avg. RoR 9%	Total Ending Balance	Even After 15% Taxes
1	$36,000	$1,462	$37,462	$31,843
5	$180,000	$44,199	$224,199	$190,569
10	$360,000	$209,156	$569,156	$483,783
15	$540,000	$559,916	$1,099,916	$934,929
20	$720,000	$1,196,555	$1,916,555	$1,629,072
25	$900,000	$2,273,056	$3,173,056	$2,697,098

4. Retire as an Automatic Millionaire Two Times Over with More Than $2.7M

• Your total at the end of the game. Let’s say you started at age 30; that’s almost $2.7 million by 55. Not even including dividend investing for the long term.
• As long as significant issues don’t arise or you don’t start doing coke, you will be fine. I’d also say be moderate in your spending on homes. Don’t buy big homes. You will still be able to have a great time. Travel etc…
• 25-30 yrs old = 50-55 years old <— way before forced retirement age of 67.

Building toward a millionaire lifestyle

There you have it, the automatic millionaire path without paying anyone a dime. Make at least $100,000 as a household. Allocate and invest no less than $3,000 per month. And finally, continue to live your life. That’s all there is to it.

Again, you don’t have to start at $100,000, so it’s OK to have a goal. Most people start at around $45,000. We work our way up. Focus on the Destination, not the starting line. If you don’t want to invest $3,000 per month, it will simply take you longer. Your investment contributions x rate of return x time = your wealth. For example, if you invest $500 per month, it would take you 42 years and 9 months to reach $2.7M at a rate of return of 9%. My wife and I don’t want to spend the years toiling away. We invest, on average, over $5,000 per month to walk away from the game early (17 years). In the end, we are all in pursuit of more quality time.

Understand the core philosophy, and the numbers work out.

Bonus: Here’s how TNFG became a millionaire household

Closing out the year stronger, as automatic millionaires or on the path

1. Working on investing in the after-tax portfolio to hit the total of $100,000 in M1 Finance Brokerage, focused on Dividend Income that generates at least $5,000 in passive Income by YE 2026. Check out the portfolio in real-time.
2. Boosting the EF savings with an additional $12,500 by YE 2026. Keep tabs on your savings, cash flow, net worth, investments, retirement, and more for absolutely FREE with Personal Capital! Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
3. Getting back to shape – HIIT Mornings. Running and biking, just pushing out effort. Health is Wealth. You will save a lot of money this way.

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